CLEARWATER, Fla. — Despite a 7-percent softening of its net
earnings during the second quarter of its fiscal year, Nicholas Financial announced
a dividend payment to owners of common stock for the second time since the
beginning of November.

This week, the company that specializes in purchasing and
servicing auto loans made by franchised and independent dealers chose to award a
special cash dividend of $2 per share on its common stock to be paid on Dec. 28 to
shareholders of record as of Dec. 21.

Back on Nov. 9, Nicholas Financial announced common stock
shareholders would be given a dividend of 12 cents per share. The company has
approximately 12.2 million shares of common stock outstanding.

Chairman and chief executive officer Peter Vosotas noted the
newest dividend payment "to be paid before the end of the calendar year is our
effort to return capital to our shareholders in the most tax efficient manner
as possible.

"Our strong balance sheet and favorable access to the credit
markets allow us to provide shareholders with this dividend while maintaining
our conservative capital structure. The payment is in addition to our $0.12 quarterly
dividend paid on Dec. 6," Vosotas continued.

"Based on the decision to pay this special dividend, the
company may elect to forego future dividends," he added.

Nicholas Financial is making these dividend payments on the
heels of the second quarter of its fiscal year that included that 7-percent dip
in net earnings. The figure slid to $5.16 million from $5.52 million.

However, the company's revenue ticked 3 percent higher
year-over-year, moving up to $17.77 million from $17.21 million.

"Our results for the three months ended Sept. 30 were
adversely affected by a non-cash charge related to interest rate swaps
(mark-to-market) and an increase in operating expenses as a percentage of net finance
receivables," Vosotas said.

"We continue to develop additional markets and expect to
open between two and four new branch locations during the remainder of our
current fiscal year, which ends March 31," he continued.

That newest branch now is operating as Nicholas Financial
added its 64th full service location earlier this month in Troy, Mich., a
suburb of Detroit.